Chapter 461 - 434: The Ruthlessness of Capital
Tang Jinglun also learned about the troubles of the Da Heng Group, not expecting this black swan to take off from Weishan Island.
Tang Jinglun had no intention of gloating; Da Heng’s troubles did not mean that Huayuan could benefit. Regarding today’s events, he also suffered some losses, as the carefully planned groundbreaking ceremony was overshadowed by Da Heng’s sudden incident.
Looking at the news about Da Heng one after another on the trending list, a bitter smile appeared on Tang Jinglun’s lips. The over one million spent today was wasted, like a small stone thrown into Weishan Lake, not even causing a splash. Such an ineffective investment felt like too much.
Tang Jinglun had originally prepared a series of promotional plans, but he decided to temporarily abandon them because he foresaw that Da Heng would become the focus of the capital market in the near term. It would be difficult for Huayuan to create a new hotspot, and if not careful, it might help Da Heng divert attention. Whether it was a blessing or a curse was still uncertain, so it was better to avoid getting involved.
Tang Jinglun canceled the meeting scheduled for four in the afternoon. He decided to leave; from today, the Healthy Elderly Care Hospital was officially open for construction. His requirement was to strive to complete the construction of the command center and model demonstration area within a month and a half. During this period, the best way to respond was to hibernate, observe the development of the situation, and then plan an attack.
The first round of promotions could only end dismally. Wait until the construction of the model demonstration area is completed, and then carry out another round of promotions. The more urgent it is now, the more cautious one must be.
Just as Tang Jinglun was about to leave, he received a phone call from Zhang Hengyang. Zhang Hengyang first expressed his apologies for not being able to attend their groundbreaking ceremony today, then proposed to meet with Tang Jinglun alone.
Although they were not on the same level, Tang Jinglun was quite curious about what had happened to Da Heng and agreed without hesitation to Zhang Hengyang’s invitation.
The meeting place was chosen at the Da Heng Weishan Island business unit, firstly because the environment there was good, and another reason was that Tang Jinglun did not want too many people to know about their meeting.
Zhang Hengyang hosted Tang Jinglun in the tea room. Da Heng’s encounter with this rights protection incident made Tang Jinglun one of his primary suspects.
Huayuan Group’s Healthy Elderly Care Hospital is essentially similar to Da Heng’s Hot Spring Town project. Zhang Hengyang had known about Tang Jinglun’s skill with capital manipulation; from his past operational methods, he likely wouldn’t earnestly build a solid business.
The discord between Tang Jinglun and his elder brother, Tang Jingwei, the leader of Huayuan Group, was already public knowledge. Tang Jingwei scandalized not long ago and had to choose to retire, supposedly because Tang Jinglun acted against him from behind the scenes.
A person capable of acting against his brother was understandably unscrupulous and would do anything to achieve their goals.
However, after careful analysis, Zhang Hengyang determined that the likelihood of Tang Jinglun attacking them this time was low. To find the real culprit, one only needed to monitor the capital market’s performance; the culprit suppressing Da Heng’s stock price would soon surface.
Tang Jinglun sipped his tea and said, "I heard about your troubles."
Zhang Hengyang sighed and said, "This incident has blown up considerably and has alarmed the provincial level, so I’m inviting President Tang here to get some advice."
Tang Jinglun comforted him, saying, "Everything will pass. They will also consider all parties’ interests. As long as you can quell the public opinion quickly, the major issues can become minor, and the minor issues can fade. The public’s forgetfulness is the greatest; before long, no one will pay attention to this matter anymore."
Zhang Hengyang said, "President Tang, I won’t beat around the bush. I invited you here today to see if there is an opportunity for cooperation between our two companies."
Tang Jinglun, who was shrewd and cunning, knew right away that Zhang Hengyang was seeking his assistance. The cause of the Hot Spring Town rights protection incident lay in their false advertising being exposed. To reverse their image and minimize negative impact, the best way was to regain consumer trust. Tang Jinglun realized that Zhang Hengyang had his eyes on the Healthy Elderly Care Hospital.
Zhang Hengyang said, "Our Hot Spring Town project sales have always been good, and those who signed contracts will become the customer base for the Healthy Elderly Care Hospital in the future."
"I heard that over two hundred households came to cancel contracts today." Tang Jinglun unceremoniously exposed the reality. "Zhang Hengyang, you can’t just sugarcoat things; you’ve got a bomb exploding over there."
Zhang Hengyang replied, "The ones truly wanting to cancel are few. Most are just following the trend to join the commotion. Their purpose in causing a fuss is nothing more than making us concede some benefits. As long as our concessions meet their satisfaction, even if we offer refunds, they wouldn’t accept."
Tang Jinglun thought Zhang Hengyang was overly optimistic. From his understanding, there was certainly a hidden hand behind this, and he wasn’t interested in meddling in others’ affairs. He nodded and asked, "You’re experienced in real estate sales; what kind of cooperation are you talking about? Could you be more specific?"
Zhang Hengyang responded, "We want to buy into the Healthy Elderly Care Hospital." The best way to reverse their reputation was to prove there was no false advertising. As long as Da Heng invested in Huayuan’s Healthy Elderly Care Hospital, their previous promotions were not groundless.
Tang Jinglun laughed; wanting to invest at this moment seemed like clutching at straws. What were you doing earlier?
Zhang Hengyang asked, "Is President Tang willing to give us this opportunity?"
Tang Jinglun replied, "Although I am the CEO, such significant matters still need to go through the board. I’ll present this to the board for discussion as soon as possible. If approved, we can then discuss the specifics of the investment shares."
Zhang Hengyang knew well that Huayuan Group was also deeply mired in troubles. The annual report would soon be released, and Huayuan’s situation might not be better than Da Heng’s.
Though Huayuan spoke of building a Healthy Elderly Care Hospital, its actual core was still an elderly real estate project. In the real estate area, Da Heng had rich experience. Da Heng’s present might be Huayuan’s future. If both parties could join forces to weather the storm, they might overcome the imminent crisis smoothly.
Tang Jinglun saw through Zhang Hengyang’s intent. He didn’t deny the allure of cooperation, but he also realized now wasn’t the right time. Da Heng wanted to use their strength to get out of the quagmire, but if Huayuan lent a hand, they might be dragged into the mire. Standing up now to bear the brunt wasn’t a favor he was willing to extend to Da Heng.
Tang Jinglun had always been very arrogant. He had previously rejected Xu Chunliang’s proposal to cooperate with Xianhong Farm because he believed he could boost Huayuan’s stock price through a series of moves. However, the first strike today already encountered setbacks, leading Tang Jinglun to reassess his entire plan.
With timing, location, and harmony, even a perfect plan needs the right opportunity. Today’s events fully demonstrated that man proposes, but God disposes.
Da Heng’s stock price continued to plummet, forcing them to issue a series of announcements to attempt to stabilize the stock price. The Hot Spring Town rights protection incident remained prominently on the trending list the next day, making Weishan Island a focus for domestic media.
Reporters came in an endless stream, with everyone primarily focusing on the authenticity of the over 100 hot springs Da Heng claimed. This not only affected Da Heng but also affected Weishan Island’s image. Leaders in charge of Dongzhou City also expressed concern to Da Heng, urging them to resolve the contract cancellation issues as soon as possible.
The meeting between Tang Jinglun and Zhang Hengyang was exposed in the news the next day, with a news story about Huayuan Group and Da Heng Group joining forces to build a Healthy Elderly Care Hospital and developing a new model of elderly care appearing on major media outlets, accompanied by a photo of Tang Jinglun and Zhang Hengyang shaking hands.
Seeing this news infuriated Tang Jinglun, who believed Da Heng Group had sold him out. On one hand, Zhang Hengyang sought collaboration, while on the other, someone photographed their meeting and released the information, attempting to use this positive news to stabilize the company’s stock price.
Tang Jinglun promptly issued a clarification announcement, stating that the news about Huayuan and Da Heng’s cooperation was unfounded. The Healthy Elderly Care Hospital was a new type of elderly care hospital independently developed by Huayuan Group.
This statement was a blow to Da Heng Group, significantly diminishing the effect of their series of announcements.
Huayuan Group’s actions also angered Da Heng’s management. After an emergency board meeting, Da Heng announced an additional investment of three billion in the Hot Spring Town, focusing on creating the Da Heng Hot Spring Cultural Village project and establishing the Da Heng Health Division, officially venturing into the big health industry.
Starting immediately, the price per square meter at Hot Spring Town was raised by one thousand yuan, with upgraded renovation standards. For customers eligible for refunds, unconditional refunds were provided.
Da Heng’s series of measures were timely and precise, particularly daring to increase prices amid the negative press about Hot Spring Town.
Da Heng’s sales team had long mastered real estate, telling the people—are you causing trouble? Want to cancel contracts? We are raising prices. For the smallest house, its value increased by fifty thousand yuan after the price hike; if you cancel, we can only refund at the original price. Moreover, along with the renovation improvements, we also enhance facilities: for hot springs, we’ll build hot spring resorts; for hospitals, we announce hospital construction.
They exploited the people’s inclination for bargains; choosing to cancel a contract now meant a potential loss of tens of thousands of yuan, causing those originally determined to cancel to hesitate.
Da Heng wasn’t just being spiteful towards Huayuan; the Weishan Island Hot Spring Town project had seriously affected the group’s reputation. More troubling was the attention from regulatory bodies—the only way was up from here.
Meanwhile, Equatorial Capital made significant purchases of Da Heng Group’s stock, with Luan Yuchuan, dubbed a financial sharpshooter, making a comeback.
Belated analysts then realized that this crisis concerning Da Heng was no accident; someone utilized this event to suppress Da Heng’s stock price, buying on the dip. Luan Yuchuan had a history of trying to acquire Da Heng, with a style that wouldn’t stop until the goal was achieved.
